MTN issued the prospectus for a share sale to increase its black ownership, which it hopes will pave the way for its participation in the country’s proposed spectrum sale.

The offer period in the prospectus for the MTN Zakhele Futhi investment vehicle runs from 12 September to 21 October. Copies of the prospectus will be available at Nedbank branches and MTN stores nationwide from 12 September 2016, as well as online immediately.

The share sale is an invitation to black South Africans to subscribe for up to 123,416,819 ordinary shares in MTN Zakhele Futhi at ZAR 20 ($1.50) per share. The minimum investment amount required is ZAR 2,000.

The investment vehicle will, in turn, acquire shares in MTN at an effective 20 per cent discount.

MTN Zakhele Futhi, which will potentially be valued at ZAR9.9 billion, will hold approximately 4 per cent MTN Group equity.

Previously, the company said the scheme, together with the continuing contribution of MTN Zakhele, another investment vehicle, translates into what it describes as an “effective indirect, ‘see-though’ black ownership in excess of 30 per cent of MTN’s South African operations”.

MTN Zakhele is being unwound on 24 November with funding repaid. The company hopes some of its investors will join the new scheme.

The 30 per cent black ownership is necessary for companies to participate in a spectrum auction planned for next year by South African telecoms regulator, Icasa, although the process is the subject of a conflict between the watchdog and the country’s government.